Geoff Clark became the CEO of Acceleware Ltd. (CVE:AXE) in 2010. First, this article will compare CEO compensation with compensation at similar sized companies. Then we'll look at a snap shot of the business growth. Third, we'll reflect on the total return to shareholders over three years, as a second measure of business performance. The aim of all this is to consider the appropriateness of CEO pay levels.
How Does Geoff Clark's Compensation Compare With Similar Sized Companies?
At the time of writing, our data says that Acceleware Ltd. has a market cap of CA$9.5m, and reported total annual CEO compensation of CA$494k for the year to December 2018. We think total compensation is more important but we note that the CEO salary is lower, at CA$201k. We took a group of companies with market capitalizations below CA$266m, and calculated the median CEO total compensation to be CA$212k.
It would therefore appear that Acceleware Ltd. pays Geoff Clark more than the median CEO remuneration at companies of a similar size, in the same market. However, this fact alone doesn't mean the remuneration is too high. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see a visual representation of the CEO compensation at Acceleware, below.
Is Acceleware Ltd. Growing?
On average over the last three years, Acceleware Ltd. has grown earnings per share (EPS) by 59% each year (using a line of best fit). In the last year, its revenue is up 358%.
Overall this is a positive result for shareholders, showing that the company has improved in recent years. It's great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly. We don't have analyst forecasts, but shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Acceleware Ltd. Been A Good Investment?
Given the total loss of 59% over three years, many shareholders in Acceleware Ltd. are probably rather dissatisfied, to say the least. So shareholders would probably think the company shouldn't be too generous with CEO compensation.
We compared the total CEO remuneration paid by Acceleware Ltd., and compared it to remuneration at a group of similar sized companies. As discussed above, we discovered that the company pays more than the median of that group.
Importantly, though, the company has impressed with its earnings per share growth, over three years. However, the returns to investors are far less impressive, over the same period. One might thus conclude that it would be better if the company waited until growth is reflected in the share price, before increasing CEO compensation. CEO compensation is one thing, but it is also interesting to check if the CEO is buying or selling Acceleware (free visualization of insider trades).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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